Anhui Hengyuan Coal Industry and Electricity Power Co.,Ltd's (SHSE:600971) market cap dropped CN¥600m last week; Private companies bore the brunt

Key Insights

• The considerable ownership by private companies in Anhui Hengyuan Coal Industry and Electricity PowerLtd indicates that they collectively have a greater say in management and business strategy
• Wanbei Coal-Electricity Group Co.,Ltd. owns 55% of the company
• Institutions own 11% of Anhui Hengyuan Coal Industry and Electricity PowerLtd

To get a sense of who is truly in control of Anhui Hengyuan Coal Industry and Electricity Power Co.,Ltd (SHSE:600971), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 55% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies as a group endured the highest losses last week after market cap fell by CN¥600m.

In the chart below, we zoom in on the different ownership groups of Anhui Hengyuan Coal Industry and Electricity PowerLtd.

See our latest analysis for Anhui Hengyuan Coal Industry and Electricity PowerLtd

What Does The Institutional Ownership Tell Us About Anhui Hengyuan Coal Industry and Electricity PowerLtd?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Anhui Hengyuan Coal Industry and Electricity PowerLtd does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Anhui Hengyuan Coal Industry and Electricity PowerLtd's earnings history below. Of course, the future is what really matters.

Anhui Hengyuan Coal Industry and Electricity PowerLtd is not owned by hedge funds. Our data shows that Wanbei Coal-Electricity Group Co.,Ltd. is the largest shareholder with 55% of shares outstanding. This implies that they have majority interest control of the future of the company. Huatai-PineBridge Fund Management Co., Ltd. is the second largest shareholder owning 3.2% of common stock, and Fullgoal Fund Management Co. Ltd. holds about 1.3% of the company stock.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Anhui Hengyuan Coal Industry and Electricity PowerLtd

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in Anhui Hengyuan Coal Industry and Electricity PowerLtd. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 55%, of the Anhui Hengyuan Coal Industry and Electricity PowerLtd stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Anhui Hengyuan Coal Industry and Electricity PowerLtd better, we need to consider many other factors. For example, we've discovered 1 warning sign for Anhui Hengyuan Coal Industry and Electricity PowerLtd that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com